Important Terms for a Bill of Sale
- Seller: The seller is the person selling the item. The primary seller’s information, such as name and address, are included in the bill of sale, along with information for any additional sellers.
- Buyer: The buyer is the person paying for the item. The primary buyer’s name and address will be included in the bill of sale, along with information for any additional buyers.
- Sales tax: If sales tax is in effect for the item, this section specifies how much sales tax should be paid and whether it is included in the price.
- Gift: If an item is being transferred to someone as a gift, a gift bill of sale demonstrates that no (or very little) money has changed hands. This can be important for both the giver and the recipient when calculating the year’s taxes.
- Trade-in: Some bills of sale involve simply trading objects. In this case, a trade-in bill of sale indicates that the two items were equal in value or outlines the value that has been transferred.
1. Oklahoma Bill of Sale Requirements
While drafting a bill of sale is good standard practice for the purchase of many big-ticket items, they are required for the purchase of boats or motor vehicles in the state of Oklahoma. You can use the form the state of Oklahoma provides (Form 722-1) or you can draft your own.
Why Use a Bill of Sale?
In some sales, a bill of sale is required by law. Beyond satisfying these legalities, however, a bill of sale can also provide legal protections. It gives the buyer a document that proves ownership of the item while the seller has a record that they no longer own the item, as well as the agreed-upon price. This can help prevent legal disputes down the road.
There’s no required language for a bill of sale in Oklahoma, but the state only provides documents in English. If you would like to have your bill of sale translated, you can work with a state-certified translator.
Number of Copies
For motor vehicles or boats, it’s mandatory to present a copy of the bill of sale to the Oklahoma Tax Commission’s Motor Vehicle Division in order to transfer the title. As both the buyer and the seller also need a copy, three total copies are needed.
For other sales, only two copies are required: one for the buyer and one for the seller.
When an Oklahoma-registered vehicle is totaled, it still has a title. However, its title is converted to a “salvage” or “junk” title. If the car is repaired to the point where it is once again safe to drive, then it can gain a “rebuilt” title.
Anyone selling a vehicle with a salvage or rebuilt title must inform potential buyers of this title in writing.
After Purchasing a Vehicle
To sell a vehicle in Oklahoma, you need more than just a bill of sale. You need several other documents to complete the transaction.
If You’re the Seller
Vehicle sellers need to give the buyer the title and have someone witness the transaction. If the title is lost, you can get a duplicate title from the Oklahoma Tax Commission. Both seller and buyer must sign the title. You need to also provide a copy of the car’s registration to the buyer.
Finally, you will need to provide an Odometer Disclosure Statement (Form 729) if the car is less than 10 years old. If there was a lien on the car, you must also provide proof of lien release.
Sellers should then report the sale to the Oklahoma Tax Commission with Form 773. This can be done by mail, fax, or online. Sellers can provide some basic information about the vehicle in this form, including:
- Vehicle identification number (VIN)
- Title number
- License plate number
- Buyer’s name and information
- Seller’s name and information
If You’re the Buyer
Buyers have 30 days to title and register their new vehicles in Oklahoma. To complete the registration process, buyers must provide:
- Vehicle title
- Owner’s identification (License number or FEIN)
- Proof of insurance
- VIN and odometer inspection
- Bill of sale
- Application for Oklahoma Title (Form 701-6)
- Registration and titling fees
The buyer of a vehicle must pay sales tax on the vehicle before the transfer of ownership is complete. Sales tax is based on the sale price of the vehicle as well as its fair market value.
2. Oklahoma Car (Vehicle) Bill of Sale
If you’re buying or selling a car in Oklahoma, you need to get a bill of sale to keep yourself legally safe. Oklahoma provides a summary of your responsibilities as an automobile buyer or seller.
A bill of sale isn’t enough to transfer vehicle ownership alone. However, a bill of sale can be necessary to officially transfer the title. This proof of transfer can also help you correctly file your taxes and protect your interests should legal problems arise in regard to the vehicle.
3. Oklahoma Boat Bill of Sale
In order to sell a boat or any water vessel with an outboard motor in Oklahoma, you will need to provide a notarized statement that confirms that the hull identification number (HIN) of the boat and the serial number of the motor match the ownership document. This can be managed with Form BM 10.
Buyers of boats will be required to fill out an affidavit of boat/outboard motor ownership that includes:
- Serial number
- Hull identification number
- Boat length
- Motor horsepower
- Registration number
4. Oklahoma Firearm Bill of Sale
It’s not necessary to register most firearms in Oklahoma, but getting a bill of sale can still be helpful. It is a good idea to get a bill of sale for a firearm transaction to provide a clear record of who was in possession of a firearm at what time.
5. Oklahoma General Bill of Sale
You can use a general bill of sale to prove ownership and purchase of any item that is not regulated. These bills of sale can be less in-depth than those for regulated items and should include:
- Purchase price
- Item description and condition
- Date of transaction
- Identifying marks or numbers (such as serial numbers)
- Contact information for buyer and seller
- Signatures of buer and seller